Total to partner on LNG with China’s CNOOC

In addition to agreeing on a price review regarding this existing supply, the parties also set a framework for an additional supply of 1 million tpy of LNG as well as further cooperation in the LNG value chain.

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Total signed an LNG cooperation agreement between it and
China National Offshore Oil Corporation (CNOOC), seeking to
strengthen the partnership between the two companies.

Under the terms of an existing 15-year contract, Total has
been supplying China with up to 1 million tpy of LNG since
2010.

In addition to agreeing on a price review regarding this
existing supply, the parties also set a framework for an
additional supply of 1 million tpy of LNG as well as
further cooperation throughout the LNG value chain.

Total already supplies more than 8% of the Chinese market,
with 5 million tons of LNG already delivered between 2010
and 2014. In the coming years, the group is expected to
benefit from additional supply sources in Australia, Russia
and the US, complementing existing Middle East and African
sources, in order to respond to Chinas growing LNG
demand.

As a world leader in LNG, Total seeks to strengthen
its position in Asias growing LNG markets, where
China is among the largest players with 20% annual
growth,"said Yves-Louis Darricarrère,
president of Total's upstream business. "This new agreement
allows us to expand our LNG supply and reinforces our
cooperation with Chinese companies."

CNOOC is a pioneer of Chinas LNG industry and the
third largest LNG importer in the world with 13 million
tons of LNG imported in 2013. Currently, CNOOC operates 6
LNG receiving terminals in Guangdong, Fujian, Zhejiang,
Shanghai and Tianjin with further terminals under construction.

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